India’s residential property sector is transitioning into a new phase of value-led growth. While the volume of housing transactions remains largely unchanged, the total market value is projected to rise by nearly 20% in FY26, according to fresh research by ANAROCK. The surge reflects a shift towards premium housing demand in metropolitan and Tier-I cities.
The study estimates that housing sales worth ₹5.59 lakh crore were recorded in FY25 across India’s seven largest urban markets Mumbai Metropolitan Region (MMR), Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata. This figure is likely to exceed ₹6.65 lakh crore in FY26, representing one of the strongest fiscal performances for the sector since the pandemic recovery.
Although sales volumes have stabilised, analysts note that value growth continues to accelerate. “India’s housing market has decoupled volume from value,” said a senior researcher at ANAROCK. “While sales numbers dipped 14% last year, the value of transactions grew by 6%, demonstrating a preference for higher-ticket properties and lifestyle-oriented living.”
Demand for luxury and ultra-luxury housing priced above ₹1.5 crore has surged, driven by affluent domestic buyers and Non-Resident Indians (NRIs) viewing real estate as a stable, inflation-resistant investment. In the first half of FY26, 42% of all new launches fell within the premium segment, underlining developers’ strategic pivot toward larger, amenity-rich projects.
Industry experts suggest this reflects a behavioural shift among urban buyers who increasingly prioritise comfort, connectivity, and community infrastructure over affordability. Limited new launches in the lower-income segment have further lifted the average ticket size across cities.Delhi-NCR and Chennai are emerging as standout performers. NCR achieved nearly three-quarters of its FY25 total housing value within six months of FY26, propelled by strong corporate expansion and infrastructure upgrades. Chennai, too, reached over 70% of its annual target in the same period, buoyed by technology-sector demand and rising investor confidence.
In contrast, MMR, India’s largest market, saw slower momentum, achieving only 45% of last year’s value. High land prices and project saturation are cited as key challenges. Bengaluru, Pune, Hyderabad, and Kolkata reported moderate but stable growth patterns.Developers and fund managers interpret the current trends as signs of a maturing market. Rather than chasing volume, developers are prioritising delivery efficiency, premium positioning, and sustainable urban design. Experts believe this phase will consolidate India’s housing ecosystem into one driven by value, quality, and end-user demand.As the market rebalances post-pandemic, FY26 could mark a defining year where Indian real estate moves from recovery to resilience, cementing its status as a long-term wealth-creation avenue.
India Housing Market Value To Jump 20 Percent In FY26 As Volumes Stagnate
